EOn Comm swings to a quarterly profit as revenue rises 16% (5:10 PM ET) SAN FRANCISCO (AFX) -- EOn Communications Corp. was up 30% to $2.65 in after-hours trade Thursday. After the closing bell, the company reported second-quarter net earnings of $607,000, or 5 cents a share. In the same period last year, the company reported a net loss of $528,000, or 4 cents a share. Revenue at the Atlanta-based company rose 16% to $2.96 million from $2.55 million.
American International Group 4Q net falls 72% (5:04 PM ET) NEW YORK (AFX) -- Insurance giant American International Group said Thursday its fourth quarter 2005 net income fell 72% to $444 million, or 17 cents a share from $1.61 billion, or 62 cents a share a year ago. The latest quarterly results included a charge of $1.15 billion from previously announced regulatory settlements, as well as a $1.19 billion after tax charge for increased reserves for losses and loss expenses. Analysts polled by Thomson First Call had, on average, expected the company to earn 24 cents a share.
Borders Group net income slumps 3% (4:58 PM ET) CHICAGO (AFX) -- Borders Group Inc. said late Thursday that its fourth-quarter net income declined compared with last year's but a lower share count led to a higher per-share profit. Net income slumped 3% to $119.1 million, or $1.78 a share, compared with last year's profit of $122.8 million, or $1.62 a share. Same-store sales at the Borders domestic units climbed 2.5%. Borders said, however, that it is looking at a deeper first-quarter loss in a range of 20 cents to 30 cents a share compared with last year's 7 cents a share drop into the red. The company blamed the bigger loss on the nationwide launch of a customer-loyalty program and the planned second-quarter opening of a new distribution center. The forecast also includes the impact of non-operating adjustments, expected to reach an after-tax charge of 2 cents to 3 cents a share. Shares of Borders Group ended the session at $24.62, up 2.5%, or 59 cents.
UTStarcom sees fall to loss for 2005; shares sink (4:34 PM ET) LOS ANGELES (AFX) -- UTStarcom Inc. late Thursday predicted it would fall into a loss for 2005 despite an expected 9.3% rise in revenue. The company's shares fell following the news, delivered along with word the company would delay its 2005 annual filing with regulators. UTStarcom, which makes infrastructure systems for networks among other things, predicted a loss of $462 million for the year, reversing a profit of $73.4 million the previous year. It pegged revenue at $2.95 billion, up from $2.7 billion a year ago. The company's stock fell nearly 10% in evening trading.
Cintas income up 9%, in line with forecasts (4:32 PM ET) LOS ANGELES (AFX) -- Cintas Corp. on Thursday reported third-quarter net income of $77.7 million, or 46 cents a share, compared with $71.3 million, or 41 cents a share, for the same period a year ago. Reporting after the close, the Cincinnati-based uniform company said sales were $836.4 million vs. last year's $755.2 million. Earnings per share were in line with average estimates from analysts polled by Thomson First Call. For fiscal 2006, which ends in May, the company expects earnings of $1.92 to $1.96 a share, putting the Thomson estimate of $1.94 at the midpoint. Cintas shares ended trading down 22 cents to $43.74. Shares slipped another 44 cents, or 1%, to $43.30 after hours.
Andrx quarterly income falls (4:29 PM ET) SAN FRANCISCO (AFX) -- Andrx Corp. after Thursday's closing bell said fourth-quarter net income was $8.26 million, or 11 cents a share, compared with $20.8 million, or 28 cents a share, during the same period last year. The pharmaceutical concern said quarterly revenue was $245 million, compared with $290.6 million last year. Analysts polled by Thomson First Call had expected revenue of $254 million.
RF Monolithics quarterly earnings fall; revenue rises 13% (4:26 PM ET) SAN FRANCISCO (AFX) -- RF Monolithics Inc. after the closing bell on Thursday reported second-quarter net earnings of $140,000, or 2 cents a share, compared with $221,000, or 3 cents a share, during the year-ago period. Revenue at the Dallas-based supplier of radio frequency wireless solutions rose 13% to $12.7 million from $11.3 million. Additionally, RF Monolithics said it expects a 5% to 8% increase in its third-quarter revenue compared with the second quarter, as a result of the strength of the wireless market and booking trends.
UTStarcom delays annual report amid control weaknesses (4:25 PM ET) LOS ANGELES (AFX) -- UTStarcom Inc. late Thursday said it would delay filing its 2005 annual report with regulators in order to allow it time to complete its assessment of internal control over financial reporting. The company also said the delay would allow its audit committee more time to review the previously disclosed premature recognition of revenue involving a customer in India. UTStarcom said its annual 10-K filing, expected to be made around April 30, would include a management report that its internal control over financial reporting was not effective on Dec. 31.
Tektronix quarterly profit dips as revenue rises (4:22 PM ET) SAN FRANCISCO (AFX) -- Tektronix Inc. after Thursday's closing bell reported fiscal third-quarter net earnings of $26.5 million, or 32 cents a share, vs. $26.8 million, or 30 cents a share, in the year-ago period. There were 83.3 million shares outstanding compared with 90.7 million last year. Excluding certain items, the company's profit came in at 37 cents a share compared with 31 cents a share a year ago. Revenue at the Beaverton, Ore.-based provider of technology measurement solutions rose to $262.1 million from $256.3 million. Analysts polled by Thomson First Call had forecast earnings of 33 cents a share on revenue of $263 million. Tektronix also said separately that BT has chosen GeoProbe and Advanced Performance Monitoring from Tektronix' Unified Assurance suite for its next generation network.
Petco fourth-quarter earnings flat, but above forecasts (4:18 PM ET) LOS ANGELES (AFX) -- Petco Animal Supplies Inc. on Thursday reported fourth-quarter net income of $26.8 million, or 46 cents a share, compared with $26.3 million, or 45 cents a share for the same period a year ago. Sales were $541.5 million vs. last year's $492.3 million. Excluding one-time charges, the company would have reported earnings per share of 49 cents. Analysts polled by Thomson First Call expected the company, on average, to bring in 45 cents a share. The company also said its board has authorized a $100 million share buyback progralm. Petco shares ended trading Thursday at $21.26, up 46 cents, or 2.2%. In after-hours action, shares jumped more than 7% to $22.80.
MasterCard swings to quarterly loss; revenue rises 5% (3:30 PM ET) SAN FRANCISCO (AFX) -- MasterCard Inc. on Thursday reported a fourth-quarter net loss of $53 million, or 53 cents a share. During the same period a year ago, the payment services company posted net earnings of $1 million, or a penny a share. MasterCard's net revenue rose 5% to $716 million from $684 million a year ago. Additionally, the company said it has increased the reserve related to its currency conversion litigation based on progress in ongoing settlement discussions. The reserve is now $89 million, $75 million of which was recorded in 2005, MasterCard said.
MasterCard swings to a loss as expenses increase (2:37 PM ET) NEW YORK (AFX) -- MasterCard reported a fourth-quarter loss of $53 million, or 53 cents a share, compared to net income of $1.3 million, or a penny a share in the year-ago period. Revenue climbed 4.7% to $684 million. Operating expenses increased 15.8% to $815 million, including an increase of $27 million to the company's currency conversion litigation reserve. The company cited promotional costs, and pricing structures that provide higher discounts for greater volume at the retail level. MasterCard filed to go public in September, but has delayed the IPO.
Penn Treaty shares slump; co. delays FY05 results (10:27 AM ET) NEW YORK (AFX) -- Shares of Penn Treaty American Corp. fell almost 16% to $9.21 on Thursday after the Allentown, Pa., provider of healthcare insurance products said it plans to delay the release of its 2005 financial results until it completes an internal review of its reserves for current claims. The company said the review is focused upon its assumption of mortality for current claimants, adding that it believes policyholders remaining on claim beyond three years are living longer than originally assumed, a trend it expects to result in higher than expected future claim payments. Penn Treaty currently anticipates it may increase its current claim reserve by about $20 million to $30 million before taxes, a move that would reduce its earnings per share for fiscal 2005 by between 56 and 84 cents a share.
Winnebago shares fall nearly 8% on lower earnings report (10:16 AM ET) NEW YORK (AFX) -- Shares of Winnebago Industries Inc. fell 7.5% to $29.63 Thursday after the company said its second-quarter earnings fell nearly 39%. The company reported net income of $7.7 million, or 23 cents a share, down from $12.6 million, or 37 cents a share in the year-ago period. Revenue decreased by 13.8% to $206.4 million. The company's sales order backlog was 1,581 units at Feb. 25, compared to 2,108 units in the year-ago period. The Forest City, Iowa maker of recreational vehicles said it's tracking a shift toward lower-priced and more fuel efficient motor homes. A survey of analysts by Thomson First Call forecast earnings of 38 cents a share and revenue of $226.15 million.
URS Corp. slumps after reporting in-line earnings (9:56 AM ET) NEW YORK (AFX) - Shares of URS Corp. fell nearly 6% early Thursday after the engineering and construction company said its fourth-quarter net income dropped to $25.9 million, or 51 cents a share, compared with $26.1 million, or 59 cents a share in the year-earlier period, when there were about 6 million fewer shares outstanding. Revenue grew 18% to $1.07 billion from $907.4 million in the three months ended Dec. 30. Analysts polled by Thomson First Call forecast earnings, on average, of 51 cents a share. URS, which reported results late Wednesday, projected 2006 earnings of $2.12 a share, including 19 cents a share in stock options expense. First Call's figure is for $2.37 a share.
Schwab daily average trades rise 52% (8:51 AM ET) NEW YORK (AFX) -- Client daily average trades in February rose 52% over the year-ago period to nearly 320,000, The Charles Schwab Corp. said Thursday. The figure fell 4% from January. Schwab said it'll take about $25 million of pre-tax severance charges in the current quarter for staffing adjustments in Schwab Investor Services and U.S. Trust. Total client assets were a record $1.255 trillion as of Feb. 28, up 15% from the year-ago period and ahead of January by 1%.
Kraft to get $400 million benefit from tax resolution (8:47 AM ET) NEW YORK (AFX) -- Kraft Foods Inc. said Thursday its earnings would increase by $405 million, or 24 cents a share, this year following the resolution of an Internal Revenue Service tax audit. As a result of this and the decision to divest Milk-Bone pet snacks, Kraft increased its earnings outlook for 2006 by 17 cents a share to a range of $1.55 to $1.60 a share. The company also said it now expects cash flow of $3.4 billion, up from $2.7 billion.
Barnes & Noble sees 1Q adjusted earns 14-18c a share (8:46 AM ET) NEW YORK (AFX) -- Barnes & Noble Inc. Thursday reported fourth-quarter earnings of $123 million, or $1.76 a share, up from a year-ago profit of $115.6 million, or $1.56 a share. The latest results include an asset impairment charge of $7.5 million, or 11 cents a share. Last year's results included earnings of $3.3 million, or 5 cents a share, from discontinued operations. Sales rose 5% in the latest three months to $1.75 billion from $1.67 billion in the same period a year earlier. Same-store sales increased 3.3% in the quarter. The average estimate of analysts polled by Thomson First Call was for a profit of $1.75 a share in the January period. Looking ahead, the company forecast earnings of 10 to 14 cents a share for the first quarter and $2.20 to $2.30 a share for the full year. The full-year outlook includes expenses of 9 cents a share related to the conversion and transition of a distribution center. On an adjusted basis, excluding stock option expensing, Barnes & Noble sees earnings of 14 to 18 cents a share for the first quarter and $2.35 to $2.45 for fiscal 2006. Wall Street's current consensus estimates are for profits of 11 cents a share and $2.25 a share in the respective periods. The stock closed Wednesday at $43.22, up 1.7%.
Altria sees $1B in tax benefits after IRS review; lifts view (8:29 AM ET) NEW YORK (AFX) -- Altria Group Inc. said Thursday it plans to record roughly $1 billion in tax benefits in the first quarter following the conclusion of an examination of its tax returns running from 1996 through 1999 by the Internal Revenue Service. The company said the benefits are the result of a reversal of certain tax reserves following the issuance of the final revenue agent's report by the IRS on Wednesday. Altria, a Dow component, said it agrees with all the conclusions of the report except the disallowance of benefits related to certain leveraged lease transactions by Philip Morris Capital Corp. The company plans to reimburse $337 million of the $1 billion in tax benefits to Kraft Foods , along with $46 million in pre-tax interest. Altria is the majority owner of Kraft. As a result of this decision and Kraft's agreement to sell its Milk-Bone dog biscuit brand to Del Monte, Altria altered its outlook for fiscal 2006 to earnings of $5.25 to $5.35 a share from a previous projection of $4.85 to $4.95 a share. The tax benefits will boost earnings by about 45 cents a share, while the Milk-Bone brand sale is expected to reduce profits by roughly a nickel per share. Altria shares closed down 59 cents at $73.87 on Wednesday.
SunCom Wireless revenue dips slightly (8:28 AM ET) NEW YORK (AFX) -- SunCom Wireless Holdings Inc. on Thursday reported a fourth-quarter loss of $196 million, or $2.87 a share, compared to net income of $803 million, or $11.85 a share in the year-ago period, which included a gain of $814 million. Adjusted loss was $13.6 million, compared to earnings before interest, taxes, amortization and depreciation of $43.9 million. Revenue fell slightly to $194.8 million from $195.5 million. A survey of analysts by Thomson First Call forecast a loss of $1.91 a share and revenue of $189.3 million.
CRA Int'l 1Q earns rise amid 17.5% revenue jump (8:14 AM ET) NEW YORK (AFX) -- CRA International Inc. Thursday reported first-quarter earnings of $5.6 million, or 47 cents a share, up from a year-ago profit of $4.6 million, or 43 cents a share. Revenue at the Boston provider of financial and management consulting services rose 17.5% in the latest three months to $72.5 million from $61.7 million in the same period a year earlier. The company said the latest results include stock option expenses of $700,000, or 6 cents a share. The average estimate of analysts polled by Thomson First Call was for a profit of 45 cents a share in the February period. The company said it received a strong contribution from its litigation practices business in the quarter, while its business consulting operations saw a modest increase in revenue. Looking ahead, CRA reaffirmed its outlook for earnings of $26.5 million to $27.5 million, or $2.18 to $2.27 a share, in fiscal 2006 with revenue growth projected between 18% and 20%. The stock closed Wednesday at $46.15, up 7 cents.
Bear Stearns' net income rises 36% (8:03 AM ET) NEW YORK (AFX) -- Bear Stearns Cos. on Thursday reported a 36% increase in first-quarter net income to $514 million, or $3.54 a share, compared with net income of $379 million, or $2.64 a share, in the year-ago period. Revenue rose 19% to an all-time high of $2.2 billion. Analysts polled by Thomson First Call expected Bear Stearns, on average, to earn $2.95 a share on revenue of $2.05 billion.
Stein Mart quarterly profit declines (7:41 AM ET) NEW YORK (AFX) -- Stein Mart Inc. said Thursday that fourth-quarter net income fell to $21.1 million, or 48 cents a share, from $22.8 million, or 53 cents, a year ago. Sales for the three months ended Jan. 28 declined to $427.4 million from $444.9 million in last year's fourth quarter. Same-store sales, or sales from stores open at least a year, dropped 4.4%, the Jacksonville, Fla., discount retailer said. Analysts polled by Thomson First Call forecast earnings, on average, of 40 cents a share on $425.5 million in sales. For the first quarter, Stein Mart forecast earnings of 26 cents to 28 cents a share, versus analysts' average view for 36 cents.
Global Crossing 4Q loss widens as revenue declines (7:26 AM ET) NEW YORK (AFX) -- Global Crossing Ltd. Thursday reported a fourth-quarter loss of $79 million, wider than a year-ago loss of $27 million. These figures are prior to the payment of preferred stock dividends of $1 million in each period. Revenue fell in the latest three months to $462 million from $573 million in the same period a year earlier. The Florham Park, N.J., communications company said its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $32 million, wider than a year-ago equivalent loss of $19 million. The latest results include $15 million in additional incentive and stock compensation costs. Looking ahead, Global Crossing reiterated its expectation that it will start generating positive adjusted EBITDA in the first half of 2006, and that it will begin generating positive cash flow in the second half of 2006. The company forecast revenue of $1.8 billion to $1.9 billion for 2006. The stock closed Wednesday at $18.08, up 12 cents.
Shoe Carnival earnings more than double; sales climb (7:14 AM ET) LONDON (AFX) -- Evansville, Ind.-based Shoe Carnival Inc. said fourth-quarter earnings more than doubled to $3 million, or 22 cents a share, with sales up 13.7% to $164 million. Same-store sales rose 11.7% during the quarter. Analysts polled by Thomson First Call were expecting earnings of 21 cents a share on revenue of $163 million. For 2006, it expects earnings between $1.65 and $1.75 a share, with first-quarter earnings between 52 cents and 54 cents on a same-store sales rise between 4% and 5%.
Leap Wireless posts quarterly profit, tops estimates (7:14 AM ET) NEW YORK (AFX) -- Leap Wireless said it earned $5 million, or 8 cents a share, in the fourth quarter as it added nearly 46,000 new customers. In the year earlier period, the company lost $6.6 million, or 11 cents a share. Revenue rose to $228.9 million from $206.6 million. The average estimate of analysts polled by Thomson First Call was for earnings of 5 cents on revenue of $238.6 million. Average revenue per user rose to $39.74 in the quarter from $37.29 a year ago. The company expects to add 90,000 to 150,000 customers in the first quarter, while its churn rate -- a measure of renewal rates -- is expected to be comparable to the 3.3% rate seen in the first quarter of 2005. Shares closed Wednesday unchanged at $43.
New York & Co. posts in-line 4Q profit; backs outlook (7:13 AM ET) NEW YORK (AFX) -- New York & Co. Thursday reported fourth-quarter earnings of $20.6 million, or 36 cents a share, up from a year-ago profit of $18 million, or 32 cents a share. Sales rose 16.1% in the latest three months to $351.6 million from $302.8 million in the same period a year earlier. Same-store sales increased 9.6% in the quarter. The average estimate of analysts polled by Thomson First Call was for a profit of 36 cents a share in the January period. Looking ahead, the New York City-based women's apparel retailer reaffirmed its outlook for earnings of 20 to 23 cents a share in the first quarter and $1.06 to $1.16 a share for fiscal 2006. The stock closed Wednesday at $15.76, down 4 cents.
Cost Plus quarterly profit dips 8.5% (7:08 AM ET) LONDON (AFX) -- Retailer Cost Plus Inc. said fourth-quarter net profit fell 8.5% to $21.5 million, or 97 cents a share, while net sales rose 7% to $367 million. Same-store sales for the quarter fell 2.1%. Analysts polled by Thomson First Call were expecting earnings of 98 cents a share and sales of $366 million. Cost Plus said it expects to report a first-quarter net loss in the range of 8 cents to 16 cents a share. For 2006 it expects total sales to be in the range of $1.07 billion to $1.1 billion, with earnings in the range of 86 cents to $1.03 a share.
ConAgra revises lower profit outlook for fiscal 2007 (6:59 AM ET) WASHINGTON (AFX) -- ConAgra Inc. said restructuring actions announced Thursday will mean earnings for fiscal 2007 won't be as high as previously anticipated. As revised, the Omaha, Neb.-based company expects to show a profit for the fiscal year in a range of $1.10 to $1.15 a share. Analysts, on average, have been looking for earnings of $1.36 a share for the year ending May 2007. In addition, the packaged-foods company said it would record unspecified charges against results for the third quarter of fiscal 2006. ConAgra also said it expects to 'return to current earnings levels during fiscal 2009.' The restructuring actions are being undertaken at the direction of Gary Rodkin, the president and chief executive who joined ConAgra last fall after serving as CEO of PepsiCo Inc.
E.W. Scripps paying $366M cash to buy uSwitch Ltd. (6:14 AM ET) WASHINGTON (AFX) -- E.W. Scripps Co. said it's agreed to pay $366 million to acquire privately held uSwitch Ltd., a provider of online price-comparison services in the United Kingdom. Together with the Shopzilla online service that Scripps acquired last year, uSwitch will provide the foundation for Scripps' newly created interactive-media division, the Cincinnati-based media company said. Scripps said the uSwitch acquisition is expected to dilute earnings by 10 cents to 15 cents a share for 2006 and by an unspecified amount for 2007, before beginning to contribute to profits thereafter. Shares of E.W. Scripps added 20 cents to end Wednesday's trading at $48.
Tribune Feb. revenue falls 2.4% (6:13 AM ET) LONDON (AFX) -- Media group Tribune Co. said February revenue fell 3% to $408 million. Publishing revenue fell 2.4% to $314 million, partly due to volume declines at most of the company's newspapers along with selectively higher discounting. Broadcasting revenue dropped 4.8% to $94 million, mainly due to a fall in television revenues.
Prudential 2005 operating profit climbs 33% (2:51 AM ET) LONDON (AFX) -- U.K. insurer Prudential Plc said Thursday that operating profit from continuing operations rose 33% to 1.71 billion pounds ($2.04 billion) on a European embedded value basis. Total net fund inflows were 5.2 billion pounds, while external funds under management grew 23% to 46 billion pounds. Prudential said it intends to increase its total dividend by 3% to 16.32 pence a share. The growth was partly due to the firm's U.S. performance, where operating profit rose 93% to 741 million pounds.
Gaz de France annual profit climbs 29%, hikes dividend 48% (2:36 AM ET) LONDON (AFX) -- Gaz de France , the gas distribution company that's agreed to merge with Suez , said 2005 net income rose 29% to 1.74 billion euros, with revenue up 28% to 22.39 billion euros. Rising oil product prices lifted the profit of its production arm, which helped to offset increased pension costs at its French distribution arm and gas tariffs which it said do not cover supply costs. In 2006, it's targeting above 12% growth in EBITDA after just 2.2% growth in adjusted EBITDA in 2005, and for net income to exceed 2 billion euros. It lifted its dividend payment by 48% to 0.68 euros a share, and sees that rising above 1 euro a share in 2006. 'The planned merger with Suez will provide additional opportunities to create a leading European energy group,' it added.
Allianz 2005 net profit almost doubles (2:32 AM ET) LONDON (AFX) -- German insurance and banking group Allianz AG said Thursday that 2005 net income rose 93% to 4.38 billion euros ($5.25 billion) from a figure adjusted for goodwill amortization and tax of 2.27 billion euros in 2004. Revenue climbed 4.1% to 100.9 billion euros and the company said it will increase its dividend by 14.3% to 2.00 euros a share. In its property and casualty insurance business Allianz said operating profit rose 4.6% to 4.2 billion euros, despite losing 1.1 billion euros from natural catastrophes. Allianz added it expects operating profit and net income to rise by around 10% in 2006.
Corus to sell aluminum products unit as profit drops 61% (2:23 AM ET) LONDON (AFX) -- Corus Group , the Anglo-Dutch steelmaker, on Thursday said it's agreed to sell its aluminum rolled products division to Aleris International for 570 million pounds ($995 million), and said aftertax profit dropped 61% to 64 million pounds in the fourth quarter, as selling prices were broadly unchanged from the third quarter. Corus said its cost-cutting program started in June 2003 is still on track to save 680 million pounds a year by the end of 2006, having saved 555 million pounds in 2005. Corus said growth in the global steel market remains strong, supported by Chinese demand, and selling prices are expected to increase from the second quarter. It proposed a 1p a share final dividend, above expectations of a 0.5p payment, to bring its total dividend to 1.5p for the year. This story was supplied by MarketWatch. For further information see www.marketwatch.com.